The IRS has issued indexing adjustments for the applicable dollar amounts under Code Sec. 4980H(c)(1) and (b)(1), which are used to determine the employer shared responsibility payments (ESRP). This updated guidance is effective for taxable years and plan years beginning after December 31, 2025.
Adjusted Items
The Department of Health and Human Services (HHS) published the premium adjustment percentage for 2026 on June 25, 2025. This figure was calculated using the most recent National Health Expenditure Accounts (NHEA) data available, specifically the NHEA Projections 2023–2032. The premium adjustment percentage for 2026 is based on the ratio of projected per enrollee premiums for private health insurance in 2025 ($7,885) to those in 2013 ($4,714), yielding a premium adjustment percentage of 1.6726771319.
Accordingly, for calendar year 2026:
-
the adjusted $2,000 amount under Code Sec. 4980H(c)(1) is $3,340 ($2,000 x 1.6726771319 = $3,345.3542638, rounded down to $3,340), and
-
the adjusted $3,000 amount under Code Sec. 4980H(b)(1) is $5,010 ($3,000 x 1.6726771319 = $5,018.0313957, rounded down to $5,010).
